Principles of Financial Management
Exam Questions and Answers Graded A+
Tax Collector - Correct answer-Special Assessment accounts must be set up by
February 10 - Correct answer-AFS due and budget must be introduced
January 31 - Correct answer-Annual Debt Statement due
governing body - Correct answer-Special Improvement District budgets must be
approved by
the voters - Correct answer-Special district budgets are approved by
Board of School Estimate - Correct answer-Type I school district budgets are
approved by
Equalized valuation - Correct answer-The true value of all taxable property in the
municipality
Special meetings noticed - Correct answer-to two newspapers including the official
newspapers, which have the ability to publish the notice at least 48 hours in
advance of the meeting
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Fiscal Supervision Act - Correct answer-DLGS supervises municipalities who: a
default exists in the payment of bonded obligations, payments are due to state,
county, or school districts for more than 2 years, cash deficit amounts to more than
4% of the total tax levy, current tax collections fall below 70% for two successive
years
NJSA 52:27BB-1 - Correct answer-Local Government Supervision Act
Defined Contribution Retirement Program - Correct answer-local government unit
employees appointed in a manner that is substantially similar to gubernatorial
"advice and consent" must become members of
General Ledger, Fixed Asset Recording and Encumbrance Accounting - Correct
answer-3 TADs municipalities must follow
NJAC 5:30 - Correct answer-regulations concerning fiscal controls are established
in
chart of accounts - Correct answer-a complete listing of general ledger accounts,
including revenues and expenses generally in the order they will appear on the
general ledger
Division of Taxation - Correct answer-approves municipal contracts for
professional property revaluations
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, tenure - Correct answer-granted after the CMFO is appointed for a second term and
applies to the division
School Board Referendum - Correct answer-occurs for Type II school districts that
want to exceed the budget cap
30 CEUS - Correct answer-CMFOS must complete every two years
Retake exam - Correct answer-if the CMFO allows his/her license to lapse must
Municipal Administrative Codes - Correct answer-regulate the operations of
various departments and functions of the municipality
professional service agreement - Correct answer-those appointed to new
___________ such as consulting engineer on retainer cannot be a member of
DCRP
Sources of Laws - Correct answer-Session Laws, Revised Statutes, Revised
statutes annotated, administrative code
components of DLGS - Correct answer-Bureau of Financial Regulation &
Assistance, Bureau of Authority Regulation, Bureau of Local Management
Services, Office of Local Government Research, Local Finance Board
5 funds - Correct answer-Current Fund, Grant Fund, Utility Fund, Trust Fund,
Capital Fund
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
Exam Questions and Answers Graded A+
Tax Collector - Correct answer-Special Assessment accounts must be set up by
February 10 - Correct answer-AFS due and budget must be introduced
January 31 - Correct answer-Annual Debt Statement due
governing body - Correct answer-Special Improvement District budgets must be
approved by
the voters - Correct answer-Special district budgets are approved by
Board of School Estimate - Correct answer-Type I school district budgets are
approved by
Equalized valuation - Correct answer-The true value of all taxable property in the
municipality
Special meetings noticed - Correct answer-to two newspapers including the official
newspapers, which have the ability to publish the notice at least 48 hours in
advance of the meeting
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Fiscal Supervision Act - Correct answer-DLGS supervises municipalities who: a
default exists in the payment of bonded obligations, payments are due to state,
county, or school districts for more than 2 years, cash deficit amounts to more than
4% of the total tax levy, current tax collections fall below 70% for two successive
years
NJSA 52:27BB-1 - Correct answer-Local Government Supervision Act
Defined Contribution Retirement Program - Correct answer-local government unit
employees appointed in a manner that is substantially similar to gubernatorial
"advice and consent" must become members of
General Ledger, Fixed Asset Recording and Encumbrance Accounting - Correct
answer-3 TADs municipalities must follow
NJAC 5:30 - Correct answer-regulations concerning fiscal controls are established
in
chart of accounts - Correct answer-a complete listing of general ledger accounts,
including revenues and expenses generally in the order they will appear on the
general ledger
Division of Taxation - Correct answer-approves municipal contracts for
professional property revaluations
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, tenure - Correct answer-granted after the CMFO is appointed for a second term and
applies to the division
School Board Referendum - Correct answer-occurs for Type II school districts that
want to exceed the budget cap
30 CEUS - Correct answer-CMFOS must complete every two years
Retake exam - Correct answer-if the CMFO allows his/her license to lapse must
Municipal Administrative Codes - Correct answer-regulate the operations of
various departments and functions of the municipality
professional service agreement - Correct answer-those appointed to new
___________ such as consulting engineer on retainer cannot be a member of
DCRP
Sources of Laws - Correct answer-Session Laws, Revised Statutes, Revised
statutes annotated, administrative code
components of DLGS - Correct answer-Bureau of Financial Regulation &
Assistance, Bureau of Authority Regulation, Bureau of Local Management
Services, Office of Local Government Research, Local Finance Board
5 funds - Correct answer-Current Fund, Grant Fund, Utility Fund, Trust Fund,
Capital Fund
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
